We have revised our construction sector growth outlook significantly upward for ----, from -.- to -.- , to reflect the latest economic data and more generally, the impact of continued government support for infrastructure projects. Our longer term forecast is similarly optimistic, with a combination of deficit spending and the increasing ability to solicit private investment for infrastructure projects driving an annualized average growth rate of -.- over the first half of our forecast period. ...Our longer term forecast is similarly optimistic, with a combination of deficit spending and the increasing ability to solicit private investment for infrastructure projects driving an annualized average growth rate of -.- over the first half of our forecast period. The government s economic diversification efforts under the auspices of its Vision ---- plan appear to be bearing fruit, with the Omani government and a consortium led by Ningxia China-Arab Wanfang signing an agreement to develop the USD--.-bn Sino-Oman Industrial City near the port of Duqm, Oman. The ---year deal will see the consortium develop about --.-sq km of land in the Duqm Special Economic Zone. ...The final route will be decided after studies over the two options are finalised. Iranian Offshore Engineering and Construction Company has been contracted to conduct offshore studies for the project, while Pars Consulting Engineers will study the onshore aspects of the pipeline.
...We have revised our growth forecast for ---- substantially upward, from -.- in Q- to -.- in Q-, to reflect the sharply accelerating pace of investment over H- ----, according to the most recent data. Growth is expected to remain high over first half of our forecast period and average -.- on an annualized basis as the uptick in planned projects continues moving through the pipeline. Enhancing Oman s industrial infrastructure is a cornerstone of the government s Vision ---- plan, a five year roadmap seeking to reorient the country s economic base away from oil. The breaking ground in August of the Sino-Oman Industrial City, a USD--.-bn project encompassing manufacturing, heavy industry, and petrochemical elements in the Duqm Special Economic Zone, signals that the government s diversification efforts are gaining traction and informs the sharp recovery of our growth forecast in ---- and beyond. India-based Shriram EPC s unit Shriram EPC FZE secured a USD---mn contract to build the remaining portion of a -.-mn tonnes per annum mini steel mill project in Sohar, Oman. ...The project debt is being financed by a consortium of Omani banks.
...BMI View: Deficit spending will help offset the effects of lower oil royalties and will galvanize a return to growth in Oman s construction sector after a recession in ----. Robust structural demand will drive outperforming growth in the power and water subsectors, while a government sponsored economic diversification programme will lay the foundation for a sustained expansion of the country s commercial and industrial infrastructure. ...
